The firm GERANIUMS 'R' US produces POTTED GERANIUMS The firm is considering whether to grow an essential input for that product GERANIUM SEEDS A total of 10,000 GERANIUM SEEDS are required each month The firm currently buys the input for $0 15 per seed Growing GERANIUM SEEDS requires supplies and labor The supplies would cost $475 per month and salaries would cost $375 per month Which of the following is TRUE Answers a There IS adequate information to perform relevant cost analysis and strategic cost analysis Strategic cost analysis suggests the firm should make the product rather than buying it b It is $650 more profitable for the firm to buy the input than to make it c It is $650 less profitable for the firm to buy the input than to make it d There is NOT adequate information to perform relevant cost analysis

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The firm GERANIUMS 'R' US produces POTTED GERANIUMS. The firm is considering whether to grow an essential input for that product: GERANIUM SEEDS. A total

The firm GERANIUMS 'R' US produces POTTED GERANIUMS. The firm is considering whether to grow an essential input for that product: GERANIUM SEEDS. A total of 10,000 GERANIUM SEEDS are required each month. The firm currently buys the input for $0.15 per seed.

Growing GERANIUM SEEDS requires supplies and labor. The supplies would cost $475 per month and salaries would cost $375 per month.

Which of the following is TRUE?


Answers:	a. There IS adequate information to perform relevant cost analysis and strategic cost analysis. Strategic cost analysis suggests the firm should make the product rather than buying it.
	b. It is $650 *more* profitable for the firm to buy the input than to make it.
	c. It is $650 less profitable for the firm to buy the input than to make it.
	d. There is NOT adequate information to perform relevant cost analysis.